If the long-run market supply curve for a good is pe... - Solved MCQs & Answer

896EconomicsMedium

If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause?

Aan increase the price of the good but no increase in the number of firms in the market

Bno impact on either the price of the good or the number of firms in the market

Can increase in the number of firms in the market but no increase in the price of the good

Dan increase the price of the good and an increase in the number of firms in the market

Correct answer

C. an increase in the number of firms in the market but no increase in the price of the good

Explanation

The correct answer is an increase in the number of firms in the market but no increase in the price of the good.

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